The Fintech 5 with Biju Kizhakhemadtil — SVP of Fintech Solutions at the Fidelity Center for Applied Technology

In this ongoing series of blog posts, we are introducing you to some of the sponsors, partners, advocates, and entrepreneurs who make up the unique Fintech Sandbox community, and without whom our small team could not provide fintech startups with access to critical data and resources, entirely for free.

The Fidelity Center for Applied Technology (“FCAT”) serves as Fidelity Investments’ hub for exploring emerging technologies and social trends that may shape the future of financial services. FCAT’s charge includes assessing, testing, and scaling concepts and ideas that advance Fidelity’s market leadership and enhance customer experiences. FCAT is a frequent sponsor of our events, including, most recently, Demo Day[s] 10 in April.

Biju Kizhakhemadtil is the Head of Fintech Solutions at FCAT, where he has spent most of his career. He is responsible for developing cutting-edge technology platforms that scale with the cloud and leverage AI to power new businesses. Biju engages and collaborates with innovative fintechs to co-create financial solutions built to drive financial wellness and access. He brings decades of proven experience across financial markets and the global fintech ecosystem, including granted patents in the fields of natural language processing and advanced trading.

Biju KK, Head of Fintech Solutions at Fidelity Investments

Question #1.  Biju, how does FCAT engage with fintech startups?

At FCAT, we have a long history of engaging with fintech startups and have developed some wonderful relationships over the years. FCAT engages with fintech startups by providing a platform they can leverage to help advance their solutions and innovative ideas. We are happy for fintech startups to collaborate in experiments, research, and simulations, which also brings innovation into our own business units. We look at emerging technologies three to seven years out to drive the future, and collaborating with startups is critical to understand “where the puck is going”. An example of this is our collaboration with Dogpatch Labs, who we work with to provide support and opportunities to startups, including expertise, resources, and access to a global network. Our research also prompts us to explore startup activity in particular areas of interest so we can develop informed insights.

#2.  What fintech problem or solution are you focused on or most interested in right now?

From a fintech perspective, I’m proud to say that one of FCAT’s core focuses is making investing more accessible for the average person. We’ve seen that financial services firms often use complex and potentially intimidating terminology, so we focus on helping these people overcome that barrier by simplifying language, providing education, and helping fintechs present information more accessibly. We do this by sharing knowledge and tools to help manage the risks associated with investing, which can help the average person move forward in their journey.

#3.  Do you foresee a role for either VR (virtual reality) or AR (augmented reality) in the delivery of financial services in the near future?

FCAT has a solid track record of exploring technologies as they emerge, and we have teams dedicated to exactly this. One of our core principles at FCAT is that we strongly believe that innovation happens at the intersection of technology and customer demands — and when it comes to VR and AR, we believe that these incredible technologies have the potential to open an entirely new paradigm on how we look at, understand and leverage data. For example, this might include 3D data visualizations and data interactivity to uncover new insights.  It’s clear that there is a demand for all things data-related and we are excited to research these technologies more.

#4.  What advice do you have for startups about partnering successfully with incumbent firms?

For a successful collaboration with incumbent firms, my first bit of advice to fintech startups is to try to ensure that you are partnering with a firm that has an innovative or entrepreneurial streak. I’ve found this to be important, as I’ve seen that firms sometimes look for collaborations based on a general managerial urge to see what’s out in the market, but that can lead to mismatched cultures and priorities.

My second bit of advice is to try to fit into the existing ecosystem with minimum friction. Keep in mind that incumbent firms have businesses that operate at an established pace, so it’s easier for a startup to integrate and adjust accordingly. Incumbent firms provide stability and scalability, so it is important to respect their approach and align with their ecosystem.

My final bit of advice is to make sure that you and the incumbent firm understand the problem that you are trying to solve. If your startup and your partner share a clear understanding and are on the same page, everything will be off to a great start.

#5.  If you could change one thing about the fintech ecosystem, what would it be?

I think we need to reshape the paradigm in which startup and legacy fintech firms interact. We often see problems emerge when one party sees the other as a hindrance or a threat — perhaps the startup is too idealistic or hasty, perhaps the legacy firm is too rigid or unnecessarily bureaucratic in its decision-making. But the reality is that both can and should learn from one another, and there is quite often a happy balance stakeholders can strike when appropriately leveraging both the startup’s entrepreneurship and legacy firm’s structure and collective experience.

Bonus Question! What’s the best career or life advice you’ve received?

Many years back when I was managing teams that delivered on “business as usual” projects, someone told me that it was critical to focus on the things that matter, no matter how unrealistic. This changed my perspective and outlook on how I managed my time and career. Since then, I have always looked for opportunities that allow me and my team to push the envelope of what we do as a firm even in the face of risks, failure, and limitations.

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If you are a fintech entrepreneur with an early-stage company and you could benefit from free access to data, cloud hosting and a supportive community, please  visit our website to learn more!

The Fintech 5 with Dan New — Managing Director at EY

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

Dan New is a Managing Director at EY, a member of the Fintech Sandbox Advisory Board, and an integral part of the fintech ecosystem in Greater Boston, where he is based. Dan has extensive experience helping clients improve both the effectiveness of their operations and their internal controls.

He is also passionate about helping clients succeed in, and adapt to, a rapidly changing technology and financial services environment.

Dan New of EY
Dan New

Question #1. Dan, what are some of the ways EY works with fintechs at the startup stage?

We collaborate with fintech startups in many different ways, but there is no “one size fits all”. We first want to know and understand them (and have them get to know us). As the relationship evolves, we could provide:

  • Strategy Services: Strategic guidance on business planning.
  • Regulatory Compliance: Assistance with understanding and complying with financial regulations to mitigate non-compliance risks.
  • Technology Consulting: Support in utilizing technologies like blockchain, AI, and cloud computing for building scalable platforms.
  • Funding and Investment: Aid in preparing for funding rounds, including valuation, due diligence, and investor connections.
  • Networking Opportunities: Access to events and workshops for connecting with industry leaders and potential partners.
  • EY FinTech Adoption Index: Visibility and insights through participation in fintech trend studies and consumer adoption research.
  • EY wavespace™: A network of innovation centers for collaborative growth strategy development and business model refinement.
  • Cybersecurity and Risk Management: Services to enhance cybersecurity measures and manage risks.
  • Core Accounting Firm Services: Tax advisory, external audits and/or attestation reports (SOC).

Our services aim to help fintech startups navigate early-stage challenges and succeed in the competitive financial technology landscape.

#2. How are fintech innovations empowering consumers to take control of their financial health?

Today, consumers are increasingly taking the driver’s seat in managing their financial health, thanks to a myriad of fintech innovations.

  • Personal Finance Management Tools. These platforms aggregate financial data from various sources, providing users with a holistic view of their finances. With features like expense tracking, budgeting, and financial goal setting, consumers can make informed decisions and take proactive steps towards financial stability.
  • Open Banking. Open banking is another game-changer, breaking down the walls that once kept consumer data in the hands of a few institutions. By leveraging APIs, fintech companies can offer services that use consumers’ banking data (with their permission) to provide personalized advice, better loan rates, and more competitive savings products.
  • Peer-to-Peer Lending Platforms. The borrowing landscape is also transforming. Peer-to-peer (P2P) lending platforms bypass traditional banking channels to connect borrowers directly with investors.
  • Micro-Investment Apps. Investing is no longer the exclusive domain of the wealthy. Micro-investment apps have lowered the barrier to entry, allowing consumers to invest small amounts of money regularly.

As we look to the future, one thing is clear: the power to shape your financial destiny is increasingly in your hands. My colleague and friend, Matt Hatch (EY’s America’s FinTech Leader), recently wrote a blog post on similar topic which adds additional insights.

#3. How has participation in Boston Fintech Week been beneficial to EY?

We have been a sponsor, attendee and active participant in Boston Fintech Week since the start and have benefited from this participation in several ways:

  • Brand Visibility: Increased awareness and marketing opportunities to startups.
  • Thought Leadership: Establishing EY as a thought leader through panel discussions and presentations.
  • Networking: Connecting with fintech startups, financial institutions, tech providers, investors, and regulators.
  • Market Insights: Gaining knowledge of industry trends and innovations to help refine our services and strategies.
  • Talent Acquisition: Recruiting top fintech talent.
  • Client Engagement: Strengthening relationships with existing clients and better understanding their needs.
  • Innovation Ecosystem: Collaborating within the fintech community.
  • Regulatory Dialogue: Engaging with regulators to better understand the evolving regulatory framework.
  • Showcasing Solutions: Demonstrating our fintech success stories.

Overall, participation in Boston Fintech Week has helped us strengthen our position in the fintech sector, create new business opportunities, and stay connected with the latest industry developments. We are looking forward to Boston Fintech Week 2024 (October 14 -18, 2024)!

#4. Where do you see the biggest opportunities to apply AI to compliance and risk management challenges?

The application of Artificial Intelligence to compliance and risk management presents numerous opportunities to enhance efficiency, accuracy, and effectiveness, including:

  • Regulatory Compliance Monitoring: Real-time monitoring and interpretation of regulatory changes.
  • Transaction Monitoring and AML: Analysis of transaction data to detect fraudulent or money laundering activities.
  • KYC and CDD: Automation of data collection, verification, and risk assessment in customer due diligence, plus ongoing risk profile monitoring.
  • Risk Assessment and Management: Analysis of vast data sets for risk identification and predictive analytics for forecasting.
  • Credit Scoring and Lending: Advanced AI models for more accurate credit risk assessments, supporting informed lending decisions and broader credit access.
  • Fraud Detection and Prevention: Anomaly detection and pattern recognition to adapt to evolving fraud tactics using historical data.
  • Regulatory Reporting: Automated data gathering and report generation for regulatory compliance, enhancing accuracy and efficiency.
  • Cybersecurity: Continuous network monitoring for potential breaches and real-time threat response.
  • Model Risk Management: Validation of AI model performance and compliance with risk thresholds and regulatory standards.

Overall, the biggest opportunities lie in the ability of AI to handle large volumes of data with speed and precision, uncover insights that might be missed by humans, and adapt to new patterns and trends.

#5. Which fintech problem or solution are you personally most interested in right now?

Some of the fintech problems and solutions that are generating significant interest in the industry include:

  • Financial Inclusion: Fintech solutions that aim to provide financial services to the unbanked and underbanked populations are of great importance. Technologies like mobile banking, microfinance, and digital wallets can help increase access to financial services for those who have traditionally been excluded from the financial system.
  • Regulatory Technology: Regtech solutions which aim to simplify and streamline compliance with financial regulations using technologies like AI, machine learning, and big data analytics.
  • Payment Innovations: The continuous evolution of payment technologies, including contactless payments, instant payments, and cross-border payment solutions, is a key area of interest.
  • Blockchain and Cryptocurrencies: The application of blockchain technology in fintech extends beyond cryptocurrencies. It includes solutions for supply chain finance, smart contracts, and tokenization of assets. Cryptocurrencies themselves are also a hot topic, with discussions around their regulation, integration into traditional finance, and potential as an investment.

Bonus question! What is the best career or life advice you have received?

I was told by a mentor if I did not care about you, I would not take the time to provide critical feedback. At the time, I did not want to hear the critical feedback, but it made me a better person, employee and advisor to my clients. The feedback helped with:

  • Growth and improvement
  • Self-awareness
  • Adaptability
  • Quality of work
  • Motivation
  • Trust
  • Professional relationships
  • Problem-solving

They could have easily left the meeting and said, “Great meeting” (even if it was not). I would have felt good (in the short term) but would not have helped my long-term growth. But by taking the time to provide quality, actionable feedback, it made me better. I have never forgotten this. It was not always easy to hear, but by approaching criticism with an open mind and a willingness to learn, I was able to transform feedback into positive change and continuous improvement.

Bonus bonus question! Which podcasts do you listen to?

I listen to various podcasts while out for walks, in the car, or just to clear my mind. Some podcasts I listen to regularly include:

  • All-in
  • Industry veterans (close friends who have different political, business and life views) cover all things economic, tech, political, and social.
  • Various podcasts on my favorite Boston sports teams (city of Champions 😊).
  • Business Wars
  • Business Wars uncovers bitter feuds and highlights what drives the world’s biggest companies, their leaders, inventors, and executives, to new heights and untold riches – or to ruin.
  • The Rewatchables
  • Film podcast discussing movies we cannot seem to stop watching. If you enjoy movies, this is a great listen about movies you have probably seen several times.

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H1 2024 Wrap-Up Part 2

New Sponsors and Data Partners

Part 1 of our review of the first six months of 2024 covered the 19 startups we accepted for our Data Access Residency. And we hosted our 10th Demo Day in April, one of our two signature annual events. But we were also busy on other important fronts.

New Sponsors

We are very excited that two new sponsors joined the prestigious organizations contributing to our mission. Their generous support enables us to provide free access to data, services, a collaborative community, and a support system for early-stage fintech entrepreneurs. We are thrilled to have them working with us to further innovate in fintech. They are:

  • Global Atlantic, a leading insurance company meeting the retirement and life insurance needs of individuals and institutions. The Global Atlantic Foundation, which showcases its commitment to serving the community, and is a core part of the company’s culture and identity, provided a generous grant.
  • MCS Group, a relationship-focused consulting firm based in Boston. MCS specializes in working with fintech companies to create bespoke talent/hiring solutions for their IT teams, assisting companies ranging from startups to Fortune 500.

They joined existing sponsors Commonwealth, EY, F-Prime Capital, Fidelity Investments, Goodwin, MassMutual, Morrison Foerster, Rise, created by Barclays, and Slalom in helping startups and entrepreneurs build great products and companies.

New Data Partners

Thus far in 2024 we have welcomed three new data partners and expanded the datasets offered by a whopping seven of our long-time partners.

  • Kaleidoscope provides API access to a wide range of pre-defined and searchable securities datasets that have been extracted and aggregated from registered US and Canadian filings, including public companies, investment companies, funds, investment advisors, and US insiders. Just a few years ago, Kaleidoscope was a startup in our Data Access Residency!
  • ApeVue is a data services provider in the Private Equity / Venture Capital space. They provide the most actionable and timely market data and analytics on private company investments, including Pricing Data, Index and Benchmark Data, and Reference Datasets.
  • ATTOM is a leading curator of land, property, and real estate data, and provides premium property data to power products that improve transparency, innovation, efficiency, and disruption in a data-driven economy. ATTOM multi-sources various datasets for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population.

Existing Data Partners Benzinga, Dow Jones, FactSet, Moody’s, Nasdaq Data Link, Plaid, and S&P also made additional datasets available to our Data Access Residents.

If your company or foundation would like to discuss sponsorship opportunities, please reach out to us here. Fintech Sandbox is a 501(c)(3) organization committed to advancing financial innovation and reducing barriers for early-stage entrepreneurs by supporting the global fintech community.

And if your organization has data, and would like an efficient way to see what innovative fintech entrepreneurs can build with it, please reach out to us here. You’ll be fueling further advances in fintech while building relationships with impactful startups and entrepreneurs.

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